Nepal has banned all virtual currency activities, including trading and mining, as declared by Nepal Rastra Bank under the Foreign Exchange (Regulation) Act 1962 and NRB Act 2002. The ban was expanded in January 2022 to cover all virtual currencies, with no legal framework supporting crypto operations.
| Status | Banned |
| Risk Score | 82/100 (Very High Risk) |
| Region | south asia |
| Currency | NPR |
| Capital Gains (Personal) | N/A - crypto banned |
| Capital Gains (Corporate) | N/A |
| VAT on Crypto | No |
| Staking Tax | N/A |
| Airdrop Tax | N/A |
No crypto-specific tax guidance available.
| Required | No |
| Regulator | NRB |
| Framework | NRB declared crypto trading illegal (August 2017); expanded ban to all virtual currencies (January 2022); based on Foreign Exchange (Regulation) Act 1962 and NRB Act 2002 |
| Ease | very_complex |
No detailed enforcement information available
| Status | Research |
| Name | Nepal CBDC |
| Issuing Authority | The Nepal Rastra Bank |
| Model | retail |
| Technology | DLT |
| KYC Required | Yes |
| Travel Rule | No |
| FATF Member | No |
| FATF Status | grey_list |
| FATF Body | APG |
| Suspicious-Activity Reporting | No |
Status: Banned
Status: Banned
Status: Banned
| Legal | No |
| Electricity Cost | $0.06/kWh |
| Renewable Energy | 90% |
| Infrastructure | fair |
Mining is banned in Nepal. Electricity cost is low and renewable energy share is high, but mining is prohibited by law.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 34/100 |
| Banking Access | restricted |
| Sanctions Program Active | No |
Risk Factors
Nepal has moderate political stability with ongoing governance challenges. It is not under international sanctions but has restrictive banking access for crypto businesses and capital controls that increase operational risks.
Nepal has banned all virtual currency activities, including trading and mining, as declared by Nepal Rastra Bank under the Foreign Exchange (Regulation) Act 1962 and NRB Act 2002. The ban was expanded in January 2022 to cover all virtual currencies, with no legal framework supporting crypto operations.
Nepal is classified by FATF as: grey_list.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-20 · Data source: Soken Crypto Legal Map
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